B2B Buying Signals: What's the Difference Between Internal and External Signals?

Do you know the difference between internal and external buying signals? In the B2B industry, buying signals are events or actions that indicate a prospect is potentially ready to make a purchase. Rather than randomly contacting prospects, you can prioritize those with buying signals. If you discover a prospect who performs a buying signal-triggering event or action, you can contact the prospect to make your sales pitch. While some buying signals are internal, however, others are external.

What Are Internal Signals?

Internal signals are buying signals collected internally using your own B2B company's data. You can find them on your B2B company's website and social media profiles, for instance. Prospects who reach out to your B2B company through these online properties may be ready to make a purchase. A prospect may complete a form on your B2B company's website, or a prospect may send your B2B company a private message on LinkedIn. Regardless, these are internal signals because they occur on your B2B company's online properties.

What Are External Signals?

External signals are buying signals collected externally using a third-party provider's data. They occur outside of your B2B company's properties. There are lead generation specialists and business intelligence providers that collect data on businesses. These services can provide your B2B company with external signals. They use their own sources to identify prospects. If you partner with a lead generation specialist or business intelligence provider, you'll be able to tap into the power of external signals.

Differences Between Internal and External Signals

Internal and external signals are both buying signals that indicate a prospect is potentially ready to make a purchase. The difference lies in where and how they are acquired. Internal signals are acquired internally using your own B2B company's data. External signals, on the other hand, are collected externally using a third-party provider's data.

You don't have to choose between internal and external signals; you can use both types of buying signals in your B2B company's sales strategy. Internal signals are typically easier to acquire than their external counterparts. Even if you're unfamiliar with them, in fact, you probably already have data consisting of internal signals. They are actions or events collected internally indicating a prospect is potentially ready to make a purchase.

External signals, though, can prove more useful. They aren't collected on your B2B company's own properties. As their name suggests, external signals are collected externally. Therefore, they can provide your B2B company's invaluable information about prospects -- specifically prospects who are ready to engage with a sales rep and make a purchase.